Viterra To Acquire Dakota Growers Pasta Company

Viterra and Dakota Growers Pasta Company have signed a definitive merger agreement pursuant to which a subsidiary of Viterra will acquire all of the outstanding shares of Dakota Growers, a producer and marketer of dry pasta products in North America.

The transaction represents a total enterprise value of $240m, which includes equity value and anticipated net cash/debt at closing, subject to certain adjustments for transaction costs and other closing adjustments.

The all-cash transaction, structured as a tender offer followed by a merger of a Viterra subsidiary and Dakota Growers, has been unanimously approved by the boards of directors of both companies.

Based in Carrington, North Dakota, Dakota Growers operates a durum mill in North America and is a producer and marketer of dry pasta products, primarily supplying the ingredient, food service and private label retail markets. The company owns an integrated durum mill and pasta production plant in Carrington, North Dakota and a pasta production plant in New Hope, Minnesota.

Dakota Growers reported revenues and EBITDA of approximately $275m and $42m respectively for the latest twelve months ended October 31, 2009.

Mayo Schmidt, president and CEO of Viterra, said: We believe that by building upon our deep knowledge of the North American durum market, we can create additional value and support the increasing demand for high quality pasta desired by today's health-minded consumer.

Tim Dodd, president and CEO of Dakota Growers, said: Viterra has a reputation for quality and performance and we share similar cultures and values. This is an exciting opportunity for both companies, one that I believe will secure our long-term future and allow us to expand our product and service offerings to improve the value proposition for Dakota Growers customers.